Digital asset investment products took a major hit last week, with a massive $2 billion in outflows—the biggest weekly drop since February. Over the past three weeks, total withdrawals have climbed to $3.2 billion, and most of the losses came from the United States.
Bitcoin and Ethereum products saw the heaviest selling, while multi-asset funds actually pulled in $69 million, showing that some investors are shifting toward diversification instead of betting on single coins.
The sharp withdrawals followed big price drops across major cryptocurrencies. Because of this, total assets under management for crypto investment products fell 27%, dropping from a $264 billion peak in early October to $191 billion.
Breaking down the outflows:
- U.S. products: $1.97 billion out
- Switzerland: $39.9 million out
- Hong Kong: $12.3 million out
- Germany: the only bright spot, with $13.2 million coming in
Bitcoin products alone saw $1.38 billion pulled out last week, while Ethereum products lost $689 million. Solana and XRP had smaller outflows of $8.3 million and $15.5 million, respectively.
At the same time, Short-Bitcoin products gained interest, showing that traders are turning defensive as the market cools off.
U.S. spot Bitcoin ETFs also had a rough week, logging their third straight week of losses, with $1.1 billion in outflows—one of the biggest weekly drops ever recorded. This exit came as Bitcoin’s price slipped nearly 10%, raising concerns about how strong institutional demand really is.
Analysts at Matrixport say the market is losing momentum due to weaker ETF inflows, uncertainty around monetary policy, and long-term holders trimming their positions. They describe the current downturn as a “mini bear market,” and believe the next big move for Bitcoin will depend largely on what the Federal Reserve decides next.
Meanwhile, Solana ETFs continued to attract money, with $12 million coming in on Friday and 13 straight days of inflows. But even with that interest, Solana fell 15% over the week, while Ethereum dropped 11%, reflecting the broader market slump.
